Reliance to build Meghnaghat 718MW power plant

Indian energy giant Reliance Power will build 718MW phase-1 combined cycle power plant at Meghnaghat in Narayanganj. To this end the government is likely to sign four separate deals with the company in September, power division official said. Earlier, the scheduled date for signing the deals was August 28, 2019. Reliance will supply electricity at Tk 5.84 per unit. The company said it will complete the project in 36 months. The deals include power purchase agreement (PPA), Gas Sales Agreement (GSA), Implementation Agreement (IA) and Land Lease Agreement (LLA).

 “We have a schedule to sign the deals with the Reliance on September 1, 2019,” said an official adding that the date for signing the deals was initially scheduled in current month. “But the company takes time to sign the deals as the government instructed to open an insurance with local insurance company instead of Indian company for implementing the plant. Now, the Reliance is ready to open insurance with local firm for setting up the plant.” said the official who preferred not to be identified.

In June 2015, Reliance signed a memorandum of understanding (MoU) with Bangladesh Power Development Board (BPDB) for setting up 3,000MW LNG-based combined cycle power plants in phases at suitable locations. Indian power giant Reliance Power Ltd has proposed to install another 1500 megawatts (MW) LNG-based power plant in Chattogram. The company has sent their proposal to the Power Division. An official of the power division said the power division is reviewing the proposal from Reliance Group.

 Reliance Power Ltd has around 6000MW of power generation capacity in operation and 10,000MW under various stages of development. Earlier the government on March, 14 signed five separate contracts with Summit Corporation Limited and GE Consortium for constructing a Combined Cycle Power Plant at Meghnaghat, Narayanganj having 583 MW power generation capacity.Summit Corporation Limited and GE Consortium, a USA company will jointly implement the power plant project within March 2022.